Listen Live
Row of USPS delivery trucks

Source: UCG / Getty

The United States Postal Services (USPS) is changing their decision after placing a ban on all inbound packages from China and Hong Kong.

USPS announced on Tuesday that it would no longer accept parcels from the China and Hong Kong after the U.S.imposed an additional 10% tariff on Chinese goods. This also ended a customs exception that allowed small value parcels to enter the U.S. without paying taxes.

The Postal Service reversed their decision on Wednesday, but gave no reason. They released a statement that said they would work with Customs and Boarder Protection to implement a collection process for the new China tariffs to avoid delivery disruptions.

The ban had the potential to create massive disruptions for online shopping platforms like SHEIN and Temu. These sites are known to be popular with younger shoppers in the U.S. for cheap clothing and other products, that are usually shipped directly from China.

If USPS decided to keep the suspension, it would had likely created delays in shipments and potentially higher prices for the companies that rely on rock-bottom pricing for huge sales. Under the new tariffs imposed by President Trump on Chinese imports, analysts say consumers are likely to see price hikes and potential delays in shipments from companies such as SHEIN and Temu.